Hong Kong, Thailand to roll out two-tier tokens in digital currency prototype

  • Under a two-tier issuing system, the Hong Kong Monetary Authority will work with banks as the issuer and distributor of its digital currency
  • Hong Kong and Thai central banks are exploring blockchain-backed digital currencies to facilitate quicker payment in bilateral trade, at US$19.6 billion in 2018

The monetary authorities of Hong Kong and Thailand are poised to roll out a two-tier digital token, part of the process for creating a prototype for cross-border fund transfers between the two economies using financial technology, or fintech.The first tier of the prototype, known as Project LionRock-Inthanon, involves the issuance of a token to Hong Kong banks taking part in the pilot programme, according to a spokesman of the Hong Kong Monetary Authority (HKMA). The second tier involves the banks distributing the tokens to their corporate customers for settling wholesale payments with other banks, or with other companies, the spokesman said in response to queries by South China Morning Post.The two-tier system, similar to one under development by the People’s Bank of China, is a step forward in Project LionRock-Inthanon, which was established in November based on a fintech collaboration between HKMA and Bank of Thailand in May. The use of the blockchain-backed token is expected to speed up currency settlement between the two economies – with US$19.6 billion in bilateral trade last year – giving companies and banks more competitive exchange rates for the Hong Kong dollar and the Thai baht. scmp.com

Hong Kong, Thailand to roll out two-tier tokens in digital currency prototype
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